- SoftBank agreed to buy DigitalBridge (DBRG) for $16.00 per share in cash, valuing the company at about $4.0B.
- The board and an independent special committee unanimously approved the deal, which is targeted for H2 2026 pending shareholder, regulatory, and client consents.
- Kahn Swick & Foti and others are investigating whether the price and sale process undervalue DBRG versus its digital-infrastructure assets and projected 2026–27 earnings.
- The transaction fits SoftBank’s “physical AI” infrastructure strategy but faces execution and regulatory risks that could affect timing or terms.
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The proposed acquisition of DigitalBridge (NYSE: DBRG) by SoftBank for $16.00 per share in cash, valuing the company at approximately $4.0 billion, is anchored in SoftBank’s broader strategy to build out AI-enabling infrastructure. DigitalBridge manages around $108 billion in digital infrastructure assets—data centers, fiber networks, towers, edge infrastructure—with a global footprint. The premium to recent trading prices (15% over Dec. 26, 2025 close; ~50% over the 52-week average as of Dec. 4) suggests SoftBank views existing market valuation as disconnected from long-term AI infrastructure value.
From the shareholder perspective, the offer price has prompted questions about whether it fully reflects the economic potential embedded in DBRG’s undeveloped landbanks, future carried interest, development pipelines, and optionality in energy and site scalability. Analysts such as JPMorgan had earlier projected acquisition values in the $25-35 per share range when factoring in expected growth in 2026-27 and assuming strong performance across assets. These projections increase the likelihood of legal challenges—precisely what law firms like Kahn Swick & Foti LLC are investigating [initial article, market reports]—seeking to challenge whether the process was designed to drive a higher bid.
Regulatory, execution and financing risks loom large. The closing is conditioned on shareholder votes, regulatory clearances (antitrust, foreign investment), and consent from clients representing at least 85% of base-date revenue in some reports. There’s also risk in integrating—or preserving—operational strengths under SoftBank ownership without diluting DBRG’s alignment with clients, which are likely sensitive to change in control or perceived conflicts. For SoftBank, given recent divestitures (e.g. Nvidia stake) to fund AI bets, allocating sufficient capital, managing debt, deploying energy efficiently, and navigating site-level permitting will be critical execution challenge.
Strategically, the acquisition accelerates competition among AI infrastructure providers. For SoftBank, owning DBRG gives a ready platform with immediate scale including power and land that would take years to replicate organically. For DigitalBridge investors, the deal offers an immediate exit, albeit at a price some believe is suboptimal versus projected intrinsic value. In terms of market dynamics, this price sets a valuation floor for digital infrastructure assets, and likely compresses upside for peer firms, unless those peers can show even higher growth or resilience. Additionally, the legal investigations signal potential for deal adjustments or pressure for higher bids in the short term, though odds seem moderate given unanimous board support.
Open questions remain: Will competing bidders emerge? Can the projected growth in “physical AI” infrastructure be realized given constraints around power, permitting, and supply chain? How will regulatory scrutiny—especially around foreign ownership, critical infrastructure, and energy consumption—affect deal timing or terms? And to what extent have analysts over-estimated the future earnings such that paying substantially more would be justifiable?
Supporting Notes
- Under the agreement, SoftBank will indirectly acquire all outstanding DigitalBridge common stock for $16.00 per share in cash, valuing the transaction at approximately $4.0 billion in enterprise value.
- The offer price reflects a 15 % premium to DBRG’s closing share price on December 26, 2025 and about a 50 % premium above its unaffected 52-week average closing price as of December 4, 2025.
- DigitalBridge manages approximately US$108 billion in digital infrastructure assets, including data centers, towers, fiber networks, small cells, and edge infrastructure.
- The deal has been unanimously recommended by a special committee of independent directors, and unanimously approved by DigitalBridge’s Board.
- Analysts including JPMorgan projected acquisition value ranges of $25-35 per share based on projected earnings and infrastructure growth in 2026-27, suggesting $16 may be conservative.
- Law firms including Kahn Swick & Foti LLC are investigating whether the $16 offer and the process are adequate, indicating shareholder concern about undervaluation. [initial article][1search1]
- Analyst firms including RBC Capital Market, B. Riley, TD Cowen, and Truist have downgraded coverage and/or adjusted target prices downward to approximately $16 following the announcement, citing limited upside beyond the offer. [supporting evidence from analysts notes]
- Key deal conditions include shareholder approval, regulatory clearances, foreign investment and antitrust approval, as well as client consents; the parties are bound by no-shop and matching rights and reciprocal termination fees.